DERC New Guidelines Lays Costs On Distributors For Under 11kV Project

DERC New Guidelines Lays Costs On Distributors For Under 11kV Project

The Delhi Electricity Regulatory Commission (DERC) recently amended guidelines that is called Delhi Electricity Regulatory Commission (Group Net Metering and Virtual Net Metering for Renewable Energy) (Fifth Amendment) Guidelines, 2024. These guidelines are expected to come into effect from 1st April 2024 and remain in force till further amendments.

The DERC’s recent notification amendment was made under the Electricity Act, of 2003 (Net Metering for Renewable Energy). This amendment was made to the DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) Guidelines, 2019.
The notification stated, “All other powers enabling it on this behalf and after previous publication, hereby amend the following Guideline in DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) Guidelines, 2019 (are to be referred to as “the Principal Guidelines”).”

Amendment of Guidelines 3 (6) of Principal Guidelines:

The recent amendment mentioned, “The distribution licensees are expected to facilitate and bear the capital expenditure on account of Service Line cum Development (SLD). Further, the network augmentation towards Renewable Energy projects and the same shall be passed through in Aggregate Revenue Requirement (ARR) for the schemes under Virtual Net Metering (VNM) and Group Net Metering (GNM) mode.”

The guidelines further mentioned, “Provided that such waiver of SLD will be applicable on 11kV and below Network only.” It added, “Provided that such waiver of SLD will be effective till cumulative capacity doesn’t exceed 75 MW, 50 MW, 30 MW and 10 MW for BRPL, TPDDL, BYPL and NDMC respectively for projects under Virtual Net Metering and Group Net Metering in each Distribution Licensee. Provided further that Distribution Licensees shall submit quarterly progress reports for Net Metering, Group Net Metering, and Virtual Net Metering to the Commission and EE&RM, DoP, GoNCTD.”

Amendment of Guidelines 3

The amendment guideline 3 mentioned, “The of Principal Guidelines 3(8), is to substitute the capacity of the ground mounted RE System under GNM or VNM framework up to five times of sanctioned load of participating consumer who has opted for VNM/GNM with a maximum of 10 MW. However, there is no capping on the capacity of Rooftop Solar Renewable Energy System under VNM or GNM framework.”

The amendment guideline 13 stated, “Applicability of other charges The Renewable Energy System commissioned till 31st March 2027 are exempted, till useful life, from 100% payment of a wheeling charge, banking charge, cross-subsidy surcharge and any other charge(s).

It added, “Thereafter, projects commissioned till 31st March 2030, 25% of above-mentioned charges/surcharge are levied till useful life which will gradually increase in steps of 25% after every 3rd Year to reach 100% of such charges. Further, the distribution licensee is expected to display the available capacity under VNM/GNM guidelines on their website, updated on a quarterly basis.”